A Commentary on Jetstar Hong Kong Airways Decision Before the Air Transport Licensing Authority

Abstract

On 25 June 2015, the Air Transport Licensing Authority of Hong Kong (ATLA) issued a landmark decision rejecting Jetstar Hong Kong’s licence application to operate scheduled air services. The key question was whether Jetstar HK’s principal place of business (PPB) is Hong Kong and ATLA decided that it was not. This article provides a critical analysis of the decision primarily from the view of international aviation law. After introducing deeply-rooted principles of nationality restrictions on air carriers (ie, substantial ownership and effective control), how PPB has been interpreted in lieu of the traditional ownership and control restrictions is examined. This article also highlights potential issues surrounding ATLA’s decision, both procedurally and substantively. The authors further anticipate that, despite the irregularities, ATLA’s decision will be an important source not only in Hong Kong but also in Asia.

Keywords: aviation, constitutional law, aviation law, public air law, public law